Wednesday, January 28, 2009

You know that this U.S. recession is going to be devastating when Starbucks starts cutting jobs. From MSNBC News:

Starbucks Corp. said Wednesday that it would cut as many as 6,700 jobs as it closes hundreds more stores and eliminates more positions at its corporate headquarters.

Faced with slowing demand for lattes and cappuccinos because of the recession, Starbucks plans to close 300 stores, including 200 in the United States, and eliminate about 6,000 store jobs. The company also plans to eliminate about 700 corporate jobs, including about 350 at its corporate headquarters in Seattle.

The coffee giant made the announcement as it reported that its profit dropped 69 percent in its fiscal first quarter with sales continuing to slide.

People can't afford $5 lattes when their jobs are being lost, and their homes are being foreclosed. We are nowhere near the end of this recession.